Assessing inflation through input-output analysis Spillovers

Client/Funding Institution

European Commission, DG Economic and Financial Affairs

Abstract

The strongly rising and rather persistent inflation rates over the last two years pose an important challenge to policy makers. To design appropriate policies to combat inflation requires a thorough understanding of the sources of inflation. The massive energy price shock which hit all Member States of the European Union to a different degree has led to unprecedented levels of inflation combined with or followed by an increase in value-added inflation in most EU Member States. Input-output tables and techniques allow to disentangle the direct impact of the shock from the impact of other factors, such as value-added inflation, on inflation.

Duration

September 2023 - March 2024

wiiw team Leader

Robert Stehrer

wiiw Staff

Magdalena Höllhuber, Oliver Reiter, Robert Stehrer

Research Areas: Macroeconomic Analysis and Policy

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